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ELRCPartially AllowedCause 2250 of 2016· [2019] KEELRC 556 (KLR)

Juliet Akinyi Dima v Human Needs Project (Kenya) [2019] KEELRC 556 (KLR)

Employment and Labour Relations Court
7 October 2019
4,080 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~16 min to read original · ~4 min brief

The bottom line

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A Kenyan court awarded an employee USD 32,500 because her employer fired her without reasons or a fair hearing and had no written contract.

What this practically means

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Executive summary

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The Claimant sued the Respondent NGO for unfair and unlawful constructive dismissal and terminal dues following the termination of her employment on 13th May 2014, claiming USD 312,355 and Kshs. 630,000 comprising lost salary for the remainder of her contract, unpaid salary, unpaid RFS project wages, rental reimbursement and leave pay. The Respondent denied the employment relationship, asserting she was employed by Human Needs Project (USA) and later engaged as a consultant, that her contract was terminable on one month's notice, and that her termination was substantively and procedurally fair on grounds of gross negligence and incompetence. The court framed four issues: identity of the employer, terms of the contract, fairness of the termination, and remedies. Relying on a letter dated 8.4.2012 signed by Connie Nielsen, the court found the employer was the Respondent, the contract open-ended, and the salary USD 2,500 monthly, holding the Respondent could not benefit from its own omission to draw up a contract under Sections 9(1) and (2) of the Employment Act. The termination letter disclosed no reasons and Section 41 procedure was not followed, so under Sections 43 and 45 the termination was unfair and unjustified. The RFS wages claim, the rental reimbursement claim and leave pay failed for want of proof. The court awarded one month's salary in lieu of notice (USD 2,500) and 12 months' salary as compensation (USD 30,000), with costs and interest at court rates from the date of judgment.

Key legal issues

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01

Identity of the employer - HNP (Kenya) vs HNP (USA)

Holding

The employer was the Respondent, Human Needs Project (Kenya)

Reasoning

A letter to whom it may concern dated 8.4.2012 signed by Connie Nielsen, Co-founder and President of the Respondent, confirmed the Claimant's engagement as Kenya Project Director on an open-ended contract. Connie Nielsen also gave the Claimant instructions and was a founder and director of the Respondent, defeating the plea that instructions and payment came from the USA entity.

p. 5
02

Terms of the contract of employment

Holding

The contract was open-ended with a monthly salary of USD 2,500

Reasoning

Appendix 3 set out the salary payable of USD 2,500 per month. The Respondent was responsible for drawing up the agreement under Sections 9(1) and (2) of the Employment Act and could not rely on its own omission to deny the existence or terms of the agreement.

p. 5
03

Whether the termination was unfair and unjustified

Holding

The termination was unfair and unjustified

Reasoning

The termination letter disclosed no reasons for termination and there was no evidence of compliance with the notification and hearing requirements of Section 41. Under Section 43 the employer must prove the reasons for termination, failing which the termination is unfair under Section 45. Neither valid reason nor fair procedure was demonstrated.

p. 6
04

Whether the Claimant was entitled to the remedies sought

Holding

Partially - notice pay and 12 months' compensation awarded; RFS wages, rent reimbursement and leave pay claims failed for want of proof

Reasoning

The court found for the Claimant on one month's salary in lieu of notice and maximum 12 months' compensation for unfair termination under Section 49(1)(c). However, the RFS claim, the rental reimbursement claim and leave pay were not proved and were disregarded.

p. 7

Legal principles established

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  • The employer bears the statutory duty to draw up a written contract of service and cannot benefit from its own omission to deny agreed terms
  • Where the employer fails to prove valid reasons for termination and fair procedure, the termination is unfair under Sections 43, 45 and 41 of the Employment Act

Court orders

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  1. 1.1 month salary in lieu of notice of USD 2,500
  2. 2.12 months' salary as compensation for unlawful and unfair termination of USD 30,000 (total USD 32,500)
  3. 3.Respondent to pay costs of the suit
  4. 4.Interest on the award at court rates from the date of judgment

Authorities

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Legislation

  • Employment Act, 2007Section 2
  • Employment Act, 2007Section 9(1) and (2)
  • Employment Act, 2007Section 10(2)
  • Employment Act, 2007Section 20
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 42(1)
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 44
  • Employment Act, 2007Section 45(2)
  • Employment Act, 2007Section 49(1)(c)

Cases cited (6)

  • Charles Juma Oleng Vs M/S Auto Garage Ltd & Another
    (2014) eKLR
  • Kenneth Kimani Mburu & Another Vs Kibe Muigai Holdings Limited
    (2014) eKLR
  • Pamela Lutta Vs Mumias Sugar Co. Ltd
    (2017) eKLR
  • Kenny Kinako Vs Ringier Kenya Limited
    (2016) eKLR
  • Nahashon Muriithi Wambugu Vs Teachers Service Commission
    (2016) eKLR
  • Ndungu Transport Company & Another Vs Daniel Mwangi Waithaka Leteipa
    (2018) eKLR
Jurisdiction invoked
Article 162(2) of the Constitution (Employment and Labour Relations Court jurisdiction) - the judgment does not expressly state the provision; jurisdiction lies in the ELRC as an employment dispute

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Juliet Akinyi Dima v Human Needs Project (Kenya) [2019] KEELRC 556 (KLR)", Case Analysis (2019). Cause 2250 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/556/eng@2019-10-07

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.